Evolution Petroleum Corporation Inc.
Find Ratings ReportsEVOLUTION PETROLEUM CORP's gross profit margin for the second quarter of its fiscal year 2024 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. EVOLUTION PETROLEUM CORP has average liquidity. Currently, the Quick Ratio is 1.28 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.90% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
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Net Sales ($mil) | 21.02 | 33.68 |
EBITDA ($mil) | 6.16 | 16.05 |
EBIT ($mil) | 1.57 | 12.6 |
Net Income ($mil) | 1.08 | 10.39 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 8.46 | 3.71 |
Total Assets ($mil) | 125.97 | 131.66 |
Total Debt ($mil) | 0.2 | 0.21 |
Equity ($mil) | 87.44 | 89.14 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 41.22 | 55.34 |
EBITDA Margin | 29.31 | 47.67 |
Operating Margin | 7.45 | 37.4 |
Sales Turnover | 0.77 | 1.07 |
Return on Assets | 13.24 | 31.65 |
Return on Equity | 19.08 | 46.75 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 1.46 | 1.14 |
Debt/Capital | 0.0 | 0.0 |
Interest Expense | 0.03 | 0.13 |
Interest Coverage | 46.06 | 97.64 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 33.51 | 33.81 |
Div / share | 0.12 | 0.12 |
EPS | 0.03 | 0.31 |
Book value / share | 2.61 | 2.64 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 359642.0 | 432719.0 |
HOLD. This stock's P/E ratio indicates a discount compared to an average of 13.78 for the Oil and Gas Extraction subsector and a significant discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 2.26 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 2.46. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, EVOLUTION PETROLEUM CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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EPM 12.27 | Peers 13.78 | EPM 5.56 | Peers 5.77 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. EPM is trading at a discount to its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. EPM is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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EPM 8.79 | Peers 11.29 | EPM NM | Peers 8.64 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. EPM is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. EPM's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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EPM 2.26 | Peers 2.46 | EPM -61.30 | Peers 5.25 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. EPM is trading at a valuation on par with its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, EPM is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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EPM 2.04 | Peers 2.48 | EPM -31.54 | Peers -8.61 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. EPM is trading at a discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. EPM significantly trails its peers on the basis of sales growth. |
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